Six things ICAS members need to know about the UK’s non-financial reporting review

The UK government is proposing a major overhaul of corporate reporting and is engaging with various stakeholders to prepare what is issued for formal consultation later in 2025.

We were pleased to host three sessions with members and the Department for Business and Trade (DBT) where they walked through their proposals developed from the Call for Evidence and asked probing questions. 

If you’re a CA working in practice, industry or the public sector, these changes will impact how you prepare, review or rely on annual reports. DBT were keen to stress that the ideas discussed below are early thoughts and not fully developed policy proposals.  We encourage you to engage with DBT to help shape their thinking and respond to the consultation when it’s published later this year.

Here are some key takeaways from our thought-provoking discussions:

1. The annual report is being reimagined

The DBT is leading a review of the UK’s non-financial reporting (NFR) framework. The aim is to simplify a system that’s become too long, too complex and, in many cases, no longer fit for purpose. The review is comprehensive and seeks to streamline the sources of disclosure requirements and achieve regulatory coherence; change what is reported, including technical improvements to address inconsistencies in reporting rules and exemptions; and review where elements are reported. Ultimately, the aim is to make annual reports shorter, more useful and less boiler plate. 

2. Sustainability reporting is moving to the forefront

The review is considering whether any changes to the existing structure of reporting would be needed to accommodate the UK SRS that are currently under consultation.  While SMEs may not be directly in scope, they may face new demands for data from supply chain partners.  

3. Digital-first is the direction of travel

The review supports a move towards digital reporting — including tagging, AI and online portals. This aligns with Companies House’s digital transformation and reflects a broader push for more accessible, machine-readable reporting.

4. Simplification is a core principle

The reforms aim to remove duplicative or low-value content and reduce the burden on preparers. 

5. Assurance and accountability are under review

The government is exploring whether sustainability disclosures should be subject to assurance — and if so, by whom. This raises important questions about skills, standards and the role of auditors and other sustainability assurance professionals in a changing landscape, as well as the location of disclosures vis-a-vis the scope of an assurance opinion and challenges around assuring new forward-looking material.  This theme will be served by another separate and ongoing consultation: Developing an oversight regime for assurance of sustainability-related financial disclosures. The consultation seeks feedback on a proposal for a profession-agnostic, voluntary registration regime for sustainability assurance providers in the UK. 

6. Rolling out and implementing the changes

With the ongoing improvements to sustainability data, the new reporting regime needs to consider safe harbouring previous practices.  There needs to be a regulatory regime and potentially a mindset shift that accommodates and values the restatement of sustainability figures when more accurate data is subsequently sourced. 

DBT’s formal consultation on their proposals is expected later in 2025. Whether you’re preparing reports, auditing them or using them to make decisions, your insights can help shape a framework that works in practice — not just on paper. Gather your thoughts, ideas and feedback and get ready to input into the consultation exercise.  It will likely be a once in a lifetime opportunity to influence the corporate reporting of the future.  

The consultations linked above were issued on 25 June 2025, together with a third consultation: Climate-related transition plan requirements.  The consultation period for all three will close on 17 September 2025.